It can be difficult to find large commercial real estate, but rest assured, it is worth the wait. Retail real estate that is well set up, in a favorable location, and affordable can dramatically increase the bottom line of your store. The more profitable your company is, the better it is not only for you, but also for your employees and the local economy.
Showcase “Well configured”
A well-organized storefront is one that is clean and well-organized. It should be large enough for the products you plan to sell, or (alternatively) offer enough office space for those you plan to employ. Stores that are overcrowded or dirty are instantly unpleasant to potential customers and they often leave without buying anything, sometimes even if they really need it.
A good front window display, displaying the best of your merchandise or relevant materials related to your services, will help attract customers. It also helps keep the area well lit and inviting. The exception to this rule may be when less light best attracts your target demographic, such as Hot Topic stores.
Favorable rent
Commercial real estate that is in a favorable location can be even more difficult to find than those that offer your business enough space to do business. Patience is key here, however, because there is nothing more important than location. You may have the best products in the world, but it won’t matter if no one can see them.
The best location will be one that is centralized to your target audience. It should be located near a busy highway or in a shopping center that has a lot of patronage. For your convenience, it helps if the store is not too far from where you live. Keeping the travel distance within an hour will make the building more accessible to you.
Affordable
What is considered affordable for your business will depend on your particular situation. However, as a general rule of thumb, you want the mortgage or rental on your retail real estate to be as low as your potential income. The higher the construction costs, the less profit your company will make. If you can buy or rent a property for less than fifty percent of your total projected income, you have done well.
When doing your calculations, make sure you’ve taken into account other business expenses, such as materials, products, payroll, and utilities. If these, added to the possible cost of the store, are more than 80% of your projected revenue, you will not make any substantial profit. Without a substantial profit, your business will not be able to succeed.
Finding the perfect commercial property for your business can take a lot of time, patience and energy, but it is definitely worth it. The potential for higher profit performance is crucial to success, and a great store will allow your business to do just that. Just remember that you need a well-configured store in a favorable location that is affordable for your unique financial situation.